Category: VW

Apr 22

VW and Honda Face Dealer Backlash Over Direct EV Sales Strategy

Introduction to the Direct Sales Controversy

Honda and Volkswagen are facing significant pushback from their dealer networks as they plan to introduce new sub-brands, Afeela and Scout, which will operate outside traditional dealership structures. This shift to a direct-to-consumer sales model, similar to those used by Tesla, Rivian, and Lucid, allows manufacturers to bypass dealerships entirely, a move that is legally permissible in some states. However, this strategy has ignited a heated debate within the automotive industry, with existing dealers fearing the loss of potential sales and customer interactions.

Dealers’ Response and Legal Threats

The resistance from dealers has culminated in a concerted effort to prevent these brands from sidestepping the traditional dealership model. The Automotive Trade Association Executives (ATAE) took a bold step by running a full-page ad in Automotive News, openly threatening legal action against Honda and Volkswagen if they proceed with their plans. This public declaration marks a significant escalation in the conflict, highlighting the dealers’ willingness to use legal avenues to maintain their role in the vehicle sales process.

Implications for Future Sales and Industry Dynamics

The ongoing dispute poses a crucial question about the future of vehicle sales and the viability of the dealership model in an era increasingly dominated by direct sales. Honda’s Afeela and Volkswagen’s Scout are testing the waters of this new approach, which could potentially reshape the automotive sales landscape if they decide to forgo traditional dealerships. As both brands approach their production and sales launch dates, the industry watches closely, aware that the outcome could set a precedent for how new vehicles are sold in the United States. The standoff underscores a transformative period in automotive sales, one that could redefine relationships between manufacturers, dealers, and consumers.

Dec 18

Tesla Model 3 vs. VW ID.7 vs. BYD Seal: Which Electric Sedan Reigns Supreme?

Unveiling the Best in Electric Sedans

In a recent UK comparison, the Tesla Model 3 Highland emerged as the top contender among electric sedans, excelling in affordability, efficiency, and charging ease. Despite dominating the affordable EV market for years, Tesla now faces formidable competition from the BYD Seal and Volkswagen ID.7. This review pits these three models against each other to determine which offers the best overall driving experience.

Comprehensive Comparison and Performance Insights

The review, conducted on a 556-mile journey from London to Wales, evaluated the three sedans across various driving conditions and charging scenarios. The Tesla Model 3 stood out for its cost-effectiveness, needing just £59.20 for the trip, compared to the ID.7 and Seal, which incurred higher charging expenses. Additionally, the Tesla’s extensive Supercharger network proved advantageous, while its efficiency, averaging 3.6 miles per kWh, surpassed the BYD Seal and VW ID.7.

Practical Considerations and Real-World Performance

Testing revealed that the ID.7, despite its higher price and larger size, fell short in cold weather conditions, showing a 48% range reduction compared to its claimed range. The Model 3 Highland exhibited a more moderate 33% drop, and the BYD Seal fared better with a 23% reduction. This real-world performance data underscores the Model 3’s superior efficiency and cost benefits, making it a compelling choice for those seeking value in the electric sedan market.

Dec 18

Unveiling the Six Elite Car Brands Owned by Volkswagen Group

Volkswagen Group: A Dominant Player in the Automotive World

Volkswagen Group has risen to prominence in the automotive industry, transforming from its early days into a powerhouse of luxury and high-performance vehicles. Let’s explore the six distinguished brands that VW Group proudly owns.

1. Volkswagen: From Historic Roots to Global Prominence

Volkswagen, meaning “People’s Car” in German, has its roots in the German Labour Front (DAF) of the 1930s. Designed by Ferdinand Porsche, the brand initially aimed to provide affordable cars for the general public. Post-WWII, the iconic Beetle, developed under British supervision, spearheaded VW’s global success. By 1960, the German government sold 60% of VW shares to the public, facilitating its expansion and acquisition of other notable brands.

2. Porsche: A Legacy of Performance and Innovation

Porsche’s history is closely intertwined with Volkswagen, with early models influenced by VW’s engineering. Ferdinand Piech, a descendant of Porsche’s founder, led VW as CEO in the 1990s. Through a series of complex transactions, VW acquired full ownership of Porsche AG in 2009, merging two giants of German automotive engineering.

3. Audi: Pioneering Luxury and Technology

In December 1964, Volkswagenwerk AG acquired a 50% stake in Auto Union AG, Audi’s predecessor. Audi quickly established itself in the luxury car market, and by 2020, VW acquired the remaining shares, fully integrating Audi into its portfolio. Audi’s continuous innovation has significantly contributed to VW’s reputation for luxury and technological advancement.

4. Lamborghini: Revitalizing an Iconic Supercar Brand

Facing financial challenges in the 1990s, Lamborghini was acquired by VW Group in 1998 through Audi’s initiative. Under Audi’s management, Lamborghini has diversified its offerings, including speedboat engines and a robust merchandising division, reviving its status as a leading supercar brand.

5. Bentley: Synonymous with Luxury and Craftsmanship

VW Group acquired Bentley in July 1998, initially with rights to the Rolls Royce name until 2002. Following the separation, Bentley thrived with VW’s support, producing prestigious models like the V8 Arnage Red Label and the V12 Continental GT. Bentley remains a symbol of supreme luxury and craftsmanship within the VW Group.

6. Ducati: Excellence in High-Performance Motorcycles

Volkswagen Group ventured into the motorcycle market by acquiring Ducati in 2012, placing it under Audi’s control. Ducati has since excelled, achieving record revenues in 2022 and maintaining its dominance in the high-performance motorcycle segment, showcasing VW’s diverse portfolio.

Conclusion: Volkswagen Group’s Strategic Mastery

Volkswagen Group’s acquisitions reflect its strategic vision and commitment to excellence. By integrating brands that lead in luxury, performance, and innovation, VW Group continues to influence the future of the automotive industry while honoring its storied past.

Oct 18

Transform Your 2024 VW Atlas Cross Sport with the Rugged Basecamp Kit

Elevate Your Atlas Cross Sport’s Adventurous Appeal

With the Basecamp Kit, Volkswagen’s 2024 Atlas Cross Sport can instantly adopt a rugged, off-road persona. For an investment of $2,774 to $4,034, you can give your mid-size SUV a bold, durable look that seems ready for any adventure. This customization not only enhances the vehicle’s aesthetic but also equips it with features that make it stand out from the crowd.

A Stylish Upgrade for the Adventurous Driver

The Basecamp Kit offers VW enthusiasts a chance to transform their Atlas Cross Sport into a standout adventure vehicle. The kit’s design provides a more robust and rugged appearance, perfect for those who want their SUV to reflect their adventurous spirit. This upgrade ensures that your SUV is not only stylish but also prepared to tackle diverse terrains with confidence.

Jul 21

Alfa Romeo and Ram Shine with Top-Ranked Consumer Websites, While VW and Audi Lag Behind

Alfa Romeo and Ram Set the Standard for User-Friendly Automotive Websites

In J.D. Power’s latest Manufacturer Website Evaluation Study, Alfa Romeo and Ram have emerged as leaders in delivering exceptional consumer-facing websites. Alfa Romeo leads the premium segment with an impressive score of 755, surpassing luxury competitors like BMW and Porsche, while Ram tops the mass market with a solid 735. Both brands demonstrate how well-designed websites can significantly enhance user experience, setting a high bar in their respective categories.

The Industry’s Website Performance: A Mixed Picture

Despite these standout performers, the study highlights a mixed performance across the automotive industry. While the average satisfaction scores for both premium and mass market websites have improved slightly, brands like Volkswagen and Audi struggle, with Volkswagen’s site scoring the lowest industry-wide at 683. The study underscores the importance of a well-executed website in engaging potential customers, as it serves as the crucial first impression for many shoppers.

Jul 12

Ford Contemplates Revival of the Fiesta as an Electric Vehicle Using VW’s MEB Platform

The End of an Era and a Glimpse into the Future

Ford of Europe marked the end of an iconic era on July 7, as the last Fiesta subcompact hatchback was manufactured in Cologne, Germany. Despite the cessation of its combustion-engine models, Ford is not closing the door on the beloved Fiesta. The company is open to reintroducing the Fiesta in an electrified form, potentially breathing new life into the classic nameplate with cutting-edge technology.

Potential Collaboration with Volkswagen for an Electric Fiesta

Martin Sander, the head of passenger cars at Ford Europe, in a discussion with Automotive News Europe, hinted at the possibility of a battery-electric version of the Fiesta. This new iteration would likely utilize Volkswagen’s MEB Entry platform, tailored for affordable small EVs. Ford’s ongoing collaboration with Volkswagen, which already includes plans to build two electric vehicles on the MEB platform, suggests a promising avenue for the Fiesta’s return as an electric vehicle.

Ford’s Strategic Shift and Electrification Efforts

The transformation of Ford’s Cologne factory, which has undergone a $2 billion upgrade to accommodate the production of EVs, positions it well for the potential manufacturing of a small, more affordable electric vehicle. The plant is set to produce an electric compact SUV and a “sports crossover” in the near future, showcasing Ford’s commitment to its electrification strategy in Europe. While Ford has moved away from smaller combustion-engine models due to financial and environmental pressures, the shift towards electric vehicles offers a new chapter for the Fiesta, aligning with Ford’s goal to become fully electric in Europe by 2030.